Lightning eMotors reports revenue drop but nearly doubles production

LOVELAND — Zero-emission-vehicle provider Lightning eMotors Inc. (NYSE: ZEV) experienced a 40% year-over-year revenue decline in the second quarter of 2022, to $3.5 million from $5.9 million, the company reported Wednesday. 

Despite that, its production of vehicles and powertrains increased to 74 from 40 in the second quarter in 2021. 

The company posted $35.7 million in earnings, or 35 cents per share, for the quarter. That’s up from a $46.1 million net loss, or 79 cents per share, a year ago. Those earnings include one-time gains of $44.1 million and $10.1 million in earnout and derivative liabilities, respectively. 

In its earnings report, Lightning attributed the revenue decline to selling more Class 3 vehicles in the second quarter of 2022 and more Class 4 and 5 vehicles in the prior year quarter; those vehicles had a higher sales price. 

Lightning projects to sell between 350 and 450 units for the full fiscal year and expects to bring in $35 million to $45 million in revenue. 

In a prepared statement, Lightning chief executive Tim Reeser said the company expects all of the units it produced in the second quarter to sell in the third and fourth quarters. He added that Lightning has deepened its relationship with General Motors and is starting to produce its own chassis to help mitigate the impact of supply-chain disruptions. 

“The opportunities at Lightning eMotors have never been greater,” Reeser said in a statement. “The enthusiastic customer response to our vehicles, solutions and service reveal the positive impact from the investments in technology and productivity we have made up to this point. To continue this momentum, we are looking to invest further in our people and processes, as well as in potential strategic investments and acquisitions, to develop Lightning eMotors into a world-class manufacturer of commercial zero-emission vehicles and powertrains and accelerate our push to reach critical mass and scale. As such, while we believe we have sufficient cash to fund our operations for the next year, we are exploring ways to raise more capital to fund critical investments.”

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